Project Report on "Customer RelationshipManagement"This Project Report entitled - Customer Relationship Management (CRM). Main topic in thisproject report is Introduction of CRM, What is CRM, Customer Relationship ManagementTechniques, Ways of CRM and all information about CRM.Customer Relationship Management Introduction :The biggest management challenge in the new millennium of liberalization and globalization fora business is to serve and maintain good relationship with the king – the customer. In the pastproducers took their customers for granted, because at that time the customers were notdemanding nor had alternative source of supply or suppliers. But today there is a radicaltransformation. The changing business environment is characterized by economic liberalization,increasing competition, high consumer choice, demanding customer, more emphasis on qualityand value of purchase etc.All these changes have made today’s producer shift from traditional marketing to modernmarketing. Modern marketing calls for more than developing a product, pricing it, promoting itand making it accessible to target customer. It demands building trust, a binding force and valueadded relationship with the customers.What is Customer Relationship Management CRM ? The process of developing a cooperativeand collaborative relationship between the buyer and seller is called customer relationshipmanagement shortly called CRM. According to Ashoka dutt head of Citi Bank “the idea of CRMis to know the individual customer intimately, so that the company has a customized productready for him even before he asks for it.”Customer Relationship Management CRM Techniques :The CRM is a new technique in marketing where the marketer tries to develop long termrelationship with the customers to develop them as life time customers. CRM aims to make thecustomer climb up the ladder of loyalty.The company first tries to determine who are likely prospects i.e. the people who have a strongpotential interest in the product and ability to pay for it. The company hopes to convert many ofits qualified prospect into first time customers and then to convert those first time customers intorepeat customers. Then the company tries to convert these repeat customers into clients – theyare those people who buy only from the company in the relevant product categories. The nextchallenge for the company is to convert these client into advocates. Advocates are those clientswho praise the company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers and theclients work actively together to discover ways of getting mutual benefit.Thus in CRM the key performance figure is not just current market share but share of life timevalue by converting customers into partners.In CRM the company tries to identify that small percentage (20%) of key account holders who’scontribution to the company revenues is high (80%). So from this point of view, CRM is alsoknown as KEY ACCOUNT MANAGEMENT.Why – Customer Relationship Management A satisfied customer in 10 years will bring 100 more customers to the company. It costs 7 time more to attract a new customer than to serve an old one. 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s principle). The chances of selling to an existing customer are 1 in 2, the chances of selling to a new customer are 1 in 16.Eight ways to keep customers for life 1. Every part of the company’s marketing effort should be geared towards building lifetime relationships. 2. People want to do business with friendly people. To have effective relations a friendly attitude must permeate in the organization. 3. Information technology developments should be positively used to serve the customers. 4. The company should always be flexible to bend its rules and procedures in the client’s favor. 5. The company should communicate with its customers even when it is not trying to sell something. 6. The company can communicate and develop stronger customer bonding by providing financial and social benefits. 7. The company should try to know all its customers including their lifestyles, hobbies, likes and dislikes etc. 8. The company should make it a point to deliver more than what is promised.How to introduce CRM in the companyThere are four key steps for putting one to one marketing program to work –Step 1 : Identify your customersTo launch a one to one initiative the company must be able to locate and contact a fair number ofcustomers or at least a substantial portion of its valuable customers. It is crucial to know thecustomer details as much as possible, not just their names or address, but their habits, preferencesand so forth.
Step 2 : Differentiating your customersCustomers are different in two principal ways, they represent different levels of value and havedifferent needs. Once the company identifies its customers differentiating them will help thecompany to focus its efforts to gain the most advantage with the most valuable customers.Step 3 : Interacting with the customerInteraction is also a crucial component of a successful CRM initiative. It is important toremember that interaction just not occur through marketing and sales channels, customer interactin many different ways with many different areas of the organization so to foster relationship allthe areas of the organization must be accessible to the customer.Step 4 : Customize your enterprise’s behaviorUltimately to lock a customer into a relationship a company must adapt some aspect of itsbehavior to meet customer’s individually expressed needs this might mean mass customizing amanufactured product or it might involve tailoring some aspect of the service surrounding theproduct.Research Project on Customer Relationship ManagementReview of the Existing LiteratureWith the available literature we can summarize Customer Relationship Management (CRM) inthe words of various authors as follows-According to Shani and Chalarani – Customer Relationship Management can be defined as “anintegrated effort to identify, maintain and build up a network with the individual customers andto continuously strengthen the network for the mutual benefit of both parties, through interactive,individualized and value added contracts over a long period of time."In the words of Lekha “Customer Relationship Management (CRM) aims at delivering betterproducts and value to the customers through better understanding of his needs.”ConceptualizationA firm in textile industry has to maintain good relations with its customers. They have to retainthe customers for a long time to avail the benefit of their relations. The customer relationship
management is one of the effective tool to identify, establish and maintain relationship with thecustomers. With the help of this research we are going to identify the importance of CRM intextile industry.Focus of the problemThe textile industry is basically manufacturing based industry. Through this study we are goingto identify the importance of CRM in the textile industry. How it is benefited from CRM? Is theirany relevance of implementing CRM? And what role does information technology can play inCRM?Objectives of Project Report on Customer Relationship Management To study the current practices of Customer Relationship Management (CRM). To find out the impact of CRM on the profitability of the organization. To study the factors affecting the CRM practices. To study the role of information technology in CRM.Research MethodologyA research design is simply a plan for study in collecting and analyzing the data. It helps theresearcher to conduct the study in an economical method and relevant to the problem.Research methodology is a systematic way to solve a research problem. The methodology shouldcombine economy with efficiency.Research designThe study conducted here is exploratory cum descriptive.Collection of the dataThere are two types of data.Primary data – Primary data is that data which is collected for the first time. These data arebasically observed and collected by the researcher for the first time. I have used primary data formy project work.Secondary data – secondary data are those data which are primarily collected by the otherperson for his own purpose and now we use these for our purpose secondly.Data collection Data is collected through schedule.Findings
The customers of COMPANY are the wholesalers throughout India. COMPANY also export the fabric to countries like Egypt and U.A.E. The needs of the customers are clearly defined and the products are customized according to the needs of the customers. Customer’s comments and complaints are welcomed and resolved quickly and positively. Comments and complaints are taken through face to face interviews. The company conducts customer satisfaction surveys through research agencies. The company provides credit facility to its customers up to 90 days. If the customers pay within 7 days they are given 4% cash discount. Sales persons of the company maintain frequent and informative communication with the customers. Business process is regularly reviewed to eliminate non value-adding activities. The average sale per customer has increased by 15% and customer’s response to the marketing activities is also improving. Customer retention is also improving. The factors which have an impact on the CRM are – organization culture, support from top management, interpersonal skill of the sales personals and working environment of the company.Analysis The customers of the COMPANY are the wholesalers. It is because the number of retailers is very large as compared to the wholesalers. So it is not possible for the company to approach to the retailers. Therefore the company sells to the wholesalers and then wholesalers sell to the retailers. Customers are encouraged to give suggestions and complaints so that the company can improve its working and services. If the customer’s complaints are not resolved the customers will be dissatisfied and the company may lose its customers. Different customers have different requirements. So the company customize its product accordingly to satisfy the customers. It also gives more choice to the customers. To get the information about the customers and to measure the satisfaction the company conducts surveys. Because of the expertise needed in the research the company give this work to research agencies like AC NILSON. The company gives credit facility to its customers to increase the sales volume. If the company do not sell on credit the customers may switch over to other companies. The company maintains frequent communication with the customers. As soon as the product is ready or a new product is launched the information is provided to the customers. Communication is also necessary to maintain the interest of the customers in the company. The company gives concession to its regular customers so as to retain its most valuable and profitable customers. The company regularly reviews the business process in order to eliminate non value- adding activities, to reduce the cost and to make the whole work efficient and effective. If the internal customers are not satisfied and there is lack of coordination among the departments then it will affect the external customers also.Conclusion
From this study it can be concluded that the customer relationship management in Company issatisfactory. The company is using various CRM practices like customization of the product,maintaining interaction with the customers regularly and providing good quality product etc.Customer relationship management has a certain impact on the profitability of the company.Average sale per customer has increased 15% over the last two years. Customer response ratetowards marketing activities is also improving. There are various factors affecting the customerrelationship management like working environment of the company, support from topmanagement and coordination among the departments of the company. Information technologyis not used as much as it should be. The company is using traditional tools of CRM likequantitative research, personal interviews. The company should modern tools like data mining,contact center, e-CRM and web based survey tools.Limitations of Customer Relationship Management Time constraint is unavoidable limitation of my study. Financial problem is also there in completing this project in a proper way. As no work has been done earlier in this regard so scarcity of secondary data is also there. Inadequate disclosure of information is also the problem.Suggestions There should be more and more emphasis given by the company for satisfying the customer up to a apex limit and by providing the utility of every penny of his money. There should be more use of information technology. The company should be flexible to bend its rules and procedures in the clients favour. The company can communicate and develop stronger customer bonding by providing social and financial benefits.Questionnaire Customer Relationship Management1. Who are your customers? a) Wholesaler b) Retailers c) Both2. Are your customer’s needs clearly defined ? a) Yes b) No3. Do you conduct customer satisfaction surveys? a) Yes b) No4. Do you communicate results of your customer satisfaction surveys regularly throughoutthe company? a) Yes b) No
5. Do you actively seek out customer comments and complaints? a) Yes b) No6. How do you get customer comments and complaints? a) Face to face interview. b) Toll free numbers, formal surveys. c) Others means7. How do you get information about the customers? a) Face to face interviews b) Surveys. c) Any other means.8. Do you analyze channel effectiveness? i.e which channel is most effective in serving thecustomer? a) Yes b) No9. Do you provide credit facility to your customers? a) Yes b) No10. Do you give concessions to your regular customer? a) Yes b) No11. Do you take feedback from your customers? a) Yes b) No12. Do you customize your product or services according to the customer? a) Yes b) No13. Do you have a concept of “internal service”? a) Yes. b) No.14. Do you communicate with your customers frequently? a) Yes. b) No.15. Do you regularly review the business process to eliminate non value- adding activitiesand improve customer satisfaction? a) Yes b) No.
16. Is the working environment is conducive to the well-being and morale of all employees? a) Yes b) No.17. How much is the role of computers in serving the customers? a) Plays a big role b) Not much role to play c) No role to play.18. Do you have centralized database for customer information? a) Yes b) No such database.19. Does the staff have access to the customer database? a) Yes b) No20. Is there commitment from top management to support the customer-focused serviceconcept? a) Yes b) No21. Is there any improvement in average sale per customer? a) Yes b) No22. Is there any improvement in customer response rate to the marketing activities? a) Yes b) No23. Is there any improvement in customer retention and loyalty? a) Yes. b) No.